Registered disability savings plan (RDSP)

A registered disability savings plan (RDSP) is a savings plan that is intended to help parents and others save for the long term financial security of a person who is eligible for the disability tax credit (DTC).

Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59. Contributions that are withdrawn are not included as income to the beneficiary when they are paid out of an RDSP. However, the Canada disability savings grant (grant), the Canada disability savings bond (bond), investment income earned in the plan, and the proceeds from rollovers are included in the beneficiary's income for tax purposes when they are paid out of the RDSP.

Important notices

RDSP issuers have to deduct income tax from your taxable RDSP payments. For more information, go to Tax deduction at source.


RDSPs will be subject to anti-avoidance rules similar to the rules already in place for registered retirement income funds (RRIFs), registered retirement savings plans (RRSPs), and tax-free savings accounts (TFSAs). The change will be effective for RDSP transactions after March 22, 2017. The previous RDSP anti-avoidance rules will continue to apply for RDSP transactions undertaken prior to March 23, 2017.

Under the new RDSP anti-avoidance rules, RDSPs will continue to be subject to a tax on non-qualified advantages, as well as a more comprehensive tax on advantages and a new tax on prohibited investments.


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